A huge clampdown on payday lenders has taken place in recent years, with firms now having limits on the amount of times they can roll a loan over and the amount of interest they can charge, to stop borrowers sinking into a debt spiral.

Makerfield MP Yvonne Fovargue has been at the forefront of the clampdown. Earlier this year Ms Fovargue, who chairs the all-party group on personal debt and finance in Westminster, said families struggling with mountains of personal debt urgently need a “breathing space” to regain control of their finances.

The Financial Conduct Authority (FCA) recently announced plans to put the high-cost credit sector under the spotlight.

Caroline Wayman, chief executive and chief ombudsman of the FOS said: “Whilst payment protection insurance (PPI) continues to make up a large proportion of the complaints we see, the most striking story this year has been the rise in complaints we’ve seen from people having trouble with credit. For example, we’ve seen around three times last year’s volumes of complaints about payday loans.